Context:
India is on the verge of finalizing a crucial agreement for five lithium blocks in Argentina, marking a pivotal step in diversifying its sources of critical minerals. This strategic move holds the potential to significantly diminish India’s dependency on China for essential resources, presenting a game-changing development in the country’s resource security.
Relevance:
GS III: Energy
Dimensions of the Article:
- Key Developments in India’s Lithium Exploration:
- Overview of Lithium
Key Developments in India’s Lithium Exploration:
Draft Agreement with CAMYEN:
- The Union Ministry of Mines, through Khanij Bidesh India Ltd (KABIL), has initiated a draft exploration and development agreement with Argentinean miner CAMYEN for potential acquisition and development of five lithium blocks.
Non-disclosure Agreement with ENAMI:
- KABIL has also entered a non-disclosure agreement with Chilean miner ENAMI, exploring possibilities for “exploration, extraction, processing, and commercialization” of lithium.
PwC Consultancy for Australian Projects:
- In another strategic move, KABIL has appointed consultancy major PwC to identify investable projects in Australia.
India’s Lithium Acquisitions in Argentina:
- Over the past year, India has intensified its pursuit of critical minerals, particularly lithium.
- Lithium plays a crucial role in India’s shift towards green energy, aligning with efforts to reduce carbon footprints.
- Argentina, known for its extensive lithium deposits and cost-effective production, emerges as a key source to fulfill India’s increasing demand for this vital mineral.
Argentina’s Lithium Industry:
- Argentina currently boasts two active lithium mines, with 14 projects under construction or in advanced exploration stages as of September 2023.
- The country is poised to become a leading lithium producer globally once these projects are operational.
KABIL Board Approval and Branch Office Proposal:
- The KABIL board has previously sanctioned the ‘Draft Exploration and Development Agreement.’
- The Ministry has subsequently greenlit a proposal to establish a Branch Office in Catamarca, Argentina, indicating a significant stride in India’s lithium acquisition ventures.
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Overview of Lithium:
- Chemical Properties:
- Lithium is a chemical element denoted by the symbol Li and atomic number 3.
- Classified as a soft, silvery-white alkali metal.
- Special Characteristics:
- Distinguished by its lightness and softness, allowing it to be cut with a kitchen knife.
- Remarkably low density, enabling it to float on water.
Applications of Lithium:
- Rechargeable Batteries:
- Lithium is extensively utilized in rechargeable batteries for mobile phones, laptops, digital cameras, and electric vehicles (EVs).
- Often referred to as “white gold” in the context of EVs.
- Metal Alloys:
- Lithium metal is alloyed with aluminum and magnesium, enhancing strength and reducing weight.
- Aluminum-lithium alloys find applications in aircraft, bicycle frames, and high-speed trains.
- Toxicity:
- Lithium has no known biological role and is toxic in larger doses.
Natural Occurrence of Lithium:
- Earth’s Crust Presence:
- Lithium constitutes a mere 0.0007% of the Earth’s crust and is primarily found in minerals and salts.
- Global Reserves:
- Chile holds the world’s largest known lithium reserves, amounting to 9.3 million tonnes.
- Australia follows with 6.2 million tonnes.
- Indian Lithium Reserves:
- The Geological Survey of India identified 9 million tonnes in the Salal-Haimana area of Reasi district, J&K, ranking India as the third-largest lithium resource globally.
- Global Ranking:
- Argentina (2.7 million tonnes) and China (2 million tonnes) follow India in lithium reserves.
- Production Statistics:
- Global lithium production surpassed 100,000 tonnes in 2021, with Australia contributing 52% of the world’s lithium.
Future of Lithium Production:
- Projected Demand:
- The rising demand for batteries and EVs is anticipated to require 1.5 million tonnes of lithium carbonate equivalent (LCE) by 2025 and over 3 million tonnes by 2030.
- Production Requirements:
- To meet these projections, lithium production needs to triple by 2025 and increase nearly six-fold by 2030.
-Source: The Hindu
